Universal Music Held Preliminary Privatization Talks After Rejecting €55.8 Billion Offer
Key Facts
Universal Music Group held preliminary talks with private equity firms about a possible move to take the company private earlier this year, Bloomberg reported, as cited by Reuters. Bloomberg said, citing people familiar with the matter, that participants included Apollo Global Management, TPG and Blackstone. Reuters could not immediately verify the report. Preliminary talks do not mean the company has decided to go private or that a deal has been agreed. The news follows the board’s rejection of a separate takeover offer from Pershing Square in May, as markets await the company’s third-quarter results on October 29.
Universal Music confirmed on April 7 that it had received an unsolicited, non-binding offer from Pershing Square and said the board would review it with the help of its advisers. The offer valued the company at about €55.8 billion, or €30.40 per share, according to its published terms. The proposal included €9.4 billion in cash and 0.77 shares in a new entity for each Universal Music share. On May 29, the board unanimously rejected the offer, saying it was not in the company’s interests. The board said the proposal undervalued Universal Music and did not deliver superior value creation.
The company’s results provide a picture of its financial performance ahead of its next announcement. Revenue was €2.9 billion in the first quarter of 2026, flat year on year, but up 8.1% at constant currency, the company said. In the second quarter, revenue was €3,294 million, up 10.5% year on year and 13.3% at constant currency. The company said second-quarter results included the consolidation of Downtown Music Holdings. Reported revenue growth in the fourth quarter of 2025 was 4.8% year on year and 10.6% at constant currency, with revenue of €3,605 million.
During the first quarter, the company announced an increase in its share repurchase authorization to €1 billion. The board also authorized the monetization of half the company’s Spotify stake, and Universal Music said artists would share in the proceeds. These decisions reflect disclosed financial moves alongside the talks reported by Bloomberg, but do not establish a link between the authorization or monetization and privatization discussions. The group’s businesses include recorded music, music publishing, promotion and audiovisual content. The company says its operations span more than 60 countries.
In trading, the company’s receipt, traded under the symbol UNVGY, closed at $8.88 on October 23, compared with a close of $8.97 on October 22 and $9.05 on October 21, according to EL7 data. Universal Music shares in Amsterdam closed at €15.80 on October 26, down 1.25% for the session, according to Investing.com data. These figures cover different sessions and trading instruments, with the first referring to a receipt and the second to the Amsterdam-listed shares. The prices alone do not indicate that the stock move was a response to the report of talks. The company is scheduled to report third-quarter 2026 results on October 29, according to its investor relations page.